Update the information or change and paraphrase

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Update the information (change and paraphrase ) them from 2013 to 2015 about Dell company and add one table about ratios and two references. Do not change the titles(Common-size Balance Sheet, Liquidity Ratios, Solvency Ratios and Profitability Ratios)have a look in Team Analysis of Companies doc and follow the instructor)

1. Common-size Balance Sheet
Meanwhile the company shows a steady growth in its balance sheet. The total asset had increased by 23 % from $38,599 billion in 2011 to $47,540 billion in 2013. On the other hand, the total liabilities increased by 20% from $30,833 billion in 2011 to $36,860 billion in 2013 and total equity increased by 37.5% in the same period.

Liquidity Ratios
The current ratio for Dell was 1.19 decreased from 1.34 in the previous year. The company's quick ration in 2013 was 1.13 decreased from 1.27 in the year 2012. These tells that Dell has more current assets to cover its short term liabilities and makes Dell a safer and more financially strong company.

Solvency Ratios
Dell's five year average of total debt to equity was 5.23, compared to industry lower average ratio of 1.65. This shows that Dell had more debt (creditors) financing than equity (shareholders) financing. Long term debt for to equity on average for Dell was 0.29. Dell's approach to being more heavily financed through debt than equity may be in an attempt to keep earnings per share at an increased level.

Profitability Ratios
An important ratio is the return on assets ratio for its ability to measure earnings per dollar from its assets. The five year average for return on assets of Dell was 13.06%. This higher percentage for Dell reflects a more efficient use of its assets and higher earnings from products sold per company asset. Return on common equity is another important profitability ratio. This ratio measures the earnings success of its capital investments through common shareholders. The return on equity for Dell averaged 37.8%. An observation of this profitability measure shows that Dell is possibly much more attractive to potential investors for its ability to effectively manage and use funds generated through shareholders' equity ( Hoover's Inc, 2013).

Reference no: EM131147927

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